The Federal Government has announced certain measures in relation to funds and superannuation, focusing on digitalising reporting of trust income and extending the temporary reduction in superannuation minimum drawdown rates.
Digitalisation of trust income reporting and processing
The Government has announced that it will digitise trust and beneficiary income reporting and processing. This will enable all trust income tax returns to be lodged electronically (and benefit from increased pre-filling and automated ATO assurance).
The Government will initiate a consultation process to assist with finalising the policy scope, design and specifications. The measure is to commence from 1 July 2024.
Extension of the temporary reduction in superannuation minimum drawdown rates
The Government is proposing to extend the 50% reduction of the superannuation minimum drawdown requirements for account based pensions and similar products for a further year to 30 June 2023.
The minimum drawdown requirements determine the minimum amount of a pension that a retiree has to draw from their superannuation in order to qualify for tax concessions.
No change to superannuation guarantee rate rise
There were no changes announced to the planned Superannuation Guarantee rate increase. The rate will accordingly increase from 10% to 10.5% from 1 July 2022.
